Complex laws fueling more tip-related lawsuits

Lawsuits against restaurants by employees seeking wages are on the rise due to the increasing complexity of federal law governing the compensation of employees who receive tips and the extraordinary damages exposure involved in these cases. In 2011, the U.S. Department of Labor issued new regulations concerning tip-pooling arrangements and boosted enforcement of the Fair Labor Standards Act (FLSA), which requires that nonexempt employees be paid minimum wage for all hours worked and an ...

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